I would expect the US to be trying harder to get their greedy hands on our Canadian Oil Sands.....looks like France is beating them to it...
Total to Acquire Canada's Synenco for C$480 Million
By Sonja Franklin and Eduard Gismatullin
April 28 (Bloomberg) -- Total SA, Europe's third-largest oil company, agreed to buy Synenco Energy Inc. for about C$480 million ($475 million) to expand production from the Athabasca oil-sands in northeastern Alberta.
Total will pay $9 each for all of Synenco's shares, a 16 percent premium over Friday's closing price, the Paris-based company said today in a statement. Synenco's board recommends the offer to shareholders, Michael Supple, the company's Chief Executive Officer, told investors on a conference call today.
``This acquisition is in line with Total's strategy of expanding its heavy oil operations in the Athabasca region, an industry segment with significant long-term development potential,'' Total said.
Total plans to spend $10 billion to $15 billion over ten years to develop the oil sands. The company operates the Joslyn project, which began production in 2006, and in December started commercial output from the Surmont venture with its partner ConocoPhillips.
Calgary-based Synenco's main asset is a 60 percent stake in the Northern Lights Project about 100 kilometers (62 miles) northeast of Alberta's oil-sands hub of Fort McMurray. China Petrochemical Corp. holds the remaining 40 percent.
Synenco said in May 2007 it was looking at alternatives that may include a sale or merger after the cost to build an oil-sands processing plant soared 75 percent. The company last month said it was unlikely to build the so-called upgrader.
The acquisition offer will be valid for about 35 to 45 days once the circular has been sent to shareholders, which is expected in the coming days, Total said.
TD Securities Inc. and Merrill Lynch Canada Inc. advised Synenco, the company said in a separate statement.
Synenco shares rose C$1.18, or 15 percent, to C$8.97 on the Toronto Stock Exchange. Total added 23 cents to 52.72 euros in Paris.
Just my opinion...
